As you may know, the Federal Housing Finance Agency (FHFA) is introducing a 0.5% fee on refinance loans. That means you must lock your rate with Better Mortgage by September 20, 2020, to avoid paying additional costs. Rates are near historic lows, so if you're thinking of refinancing your home, start your pre-approval and find out exactly how much you could save. 

What you need to know about the new FHFA refinance fee

What is the new FHFA fee?

*The average cost estimate of applying the FHFA fee to a refinance loan is based on calculating .5% of a loan amount of $330,000. Individual costs may vary based on current market rates, property type, loan amount, loan-to-value, credit score, debt-to-income ratio and other variables.

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Avoid the FHFA fee. Refinance today.

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How much will this cost me?

When is this going into effect?

The new FHFA fee will raise the cost of refinancing by 0.5% of the loan amount—$1650 on average over the life of the loan*.

The Federal Housing Finance Agency (FHFA) will introduce its new fee on mortgage refinances from December 1, 2020—giving homeowners a window of opportunity to lock historically low rates. However, many lenders have already begun adjusting their pricing to include it before then. Better Mortgage clients will see the 0.5% fee reflected on mortgage refinances that are locked after September 20, 2020.

The decision comes after weeks of FHFA backlash. Groups such as the Mortgage Bankers Association and the National Association of Mortgage Brokers sent an urgent letter and launched a campaign calling on the FHFA to remove the fee. Members of Congress also joined the long list of voices against the refinance fee, sending a letter to the FHFA criticizing the decision to include the surprise fee and their concerns about how it will impact the nation's economic recovery.

At a time when mortgage delinquency is at record highs, refinancing has made monthly mortgage payments more affordable for millions of homeowners. Adding a new fee on such short notice would reduce the number of homeowners who can save and take advantage of the benefits refinancing offers.

If you’re a homeowner considering a refinance, locking in a rate as soon as possible is encouraged.

In light of market uncertainty due to COVID-19, the FHFA announced a new fee on mortgage refinances. Citing increased risk brought on by the pandemic and recent economic woes, the FHFA approved the fee to mitigate potential losses.

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